Sensex closed 769.67 points lower at 81,537.70, and Nifty 50 fell by 241.25 points to 25,048.65.
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VIVEK BENDRE
Equity benchmarks closed sharply lower with the Sensex and Nifty 50 shedding 2.4-2.5 per cent for the week even as the broader markets suffered the steepest weekly fall in four months, while the India rupee crashed to a new low on Friday.
The pain in the broader market was acute, with small-cap and mid-cap indices falling 4.5 per cent and 5.8 per cent, respectively. The Nifty Next 50 also crashed 3.8 per cent.
On Friday, Sensex and Nifty 50 shed about 1 per cent each, snapping early gains despite supportive domestic PMI data and positive cues from global markets.
Sensex closed 769.67 points lower at 81,537.70, and Nifty 50 fell by 241.25 points to 25,048.65.
Geopolitical tensions due to the US’ hard stance shook investor confidence. Unabated selling by foreign portfolio investors, weakening rupee and underwhelming performance from India Inc for Q3 so far, added to selling pressure.
Among the major results reported so far, there have been more earnings misses than beats, pointed out Anita Gandhi, Head Institutional Equities, Arihant Capital Markets.
Retail and high net worth individuals prefer not to carry forward positions ahead of long weekend, she added.
Experts now pin hopes on the upcoming Budget and India-EU trade deal for positive triggers.
A positive tweak on capital gains tax in the Budget will revive investors’ confidence, they added. As the US-trade deal is dragging, the India-EU deal could help boost the revival of the Indian economy, especially human-intensive sectors such as auto and textile.
“While the US-India trade deal delay is sentimentally weak and impacting the Indian rupee versus peers, the progress in the free trade agreement with Europe provides comfort,” said InCred Equities.
Rupee fall
The rupee closed at a life low of 91.94 per US Dollar, down 31 paise as compared to the previous close in the backdrop of continuous FPI selling in the domestic equity market, exporters delaying repatriation of their sales proceeds and lack of RBI intervention in the forex market.
After opening 13 paise stronger at 91.50 per dollar, the Indian currency hit a high/low of 91.4050/91.9700 intraday.
Abhishek Goenka, Founder & CEO, IFA Global, said: “The Indian Rupee has slipped to fresh lows today, and this move is driven by more than just short-term flows. Exporters remain cautious amid stalled trade negotiations, leading to reduced dollar supply.
“At the same time, persistent FII outflows, equity market selling, and a widening current account deficit are adding to the pressure. While the US Dollar is not particularly strong globally, the rupee’s underperformance stands out.”
Goenka noted that the RBI has the capacity to intervene — as seen in prior episodes — but its recent restraint suggests a clear policy choice: support growth over aggressively defending the currency. At current levels, the Rupee appears 3 per cent–4 per cent undervalued, but valuation alone won’t arrest the move.
Broader sell-off
Vinod Nair, Head of Research at Geojit Investments, said the broader sell-off in the stock markets was also driven by “earnings delivery falling marginally short of expectations amid premium India valuations,” adding that weakness in realty, PSU banks and Adani Group stocks further dragged sentiment ahead of the Union Budget and the US Federal Reserve’s rate decision.
Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking, said India VIX jumped 8 per cent to 14.30, signalling rising uncertainty, and warned that ahead of the monthly F&O expiry, volatility could stay elevated with Nifty moving in a broad 24,900–25,200 range.
The midcap100 and smallcap100 were down about 2 per cent. On the sectoral front, all indices ended in negative territory. Nifty Realty and Media emerged as the top two sectoral losers, shedding over 2.5 per cent each. The former emerged as the worst performer this week, tumbling nearly 14 per cent.
Published on January 23, 2026
